Multilateral Climate Initiative for POTUS in Indonesia

UNCLAS JAKARTA 000215 SENSITIVE SIPDIS FROM AMBASSADOR HUME TO S, D, S/ECC, G, OES A/S JONES USAID ASIA FOR A/AA FRANK YOUNG, EGAT FOR A/AA MIKE YATES E.O. 12958: N/A TAGS: EAGR EAID KGHG SENV PREL ID SUBJECT: Multilateral Climate Initiative for POTUS in Indonesia ¶1. (SBU) In advance of the President's visit, the United States should seek to harness a major cooperative international effort to help Indonesia achieve reduced emissions by preserving its forests and preparing it for forest carbon markets. Countries with substantial (current and planned) forest and climate investments in Indonesia have expressed a strong interest in closer cooperation with us. They have suggested a more proactive - even leading - role for the U.S. in promoting action on forests, peat lands and climate change in Indonesia. The GOI is open to new partnerships, and a U.S.-led multilateral climate initiative, matched by new commitments of resources, would powerfully focus international funding, technical assistance, and political influence to help Indonesia sustain large, long-term reductions in greenhouse gas emissions. ¶2. (SBU) The President's launch of this initiative during his upcoming visit will maximize Indonesia's and supporting nations' support. The initiative's launch could be celebrated by announcing funding for the establishment of a climate change center in Indonesia focused (at least initially) on the critical forest/land-use sector. Such a center could form a part of the platform for multilateral collaboration in Indonesia, taking into account the interests and potentially considerable resources of other countries, which might be more than the U.S. is able to immediately muster for a new initiative. The GOI would be receptive to this idea given the recent draft proposal shared with USAID to establish a climate change center for the region. ¶3. (SBU) Deforestation and peat land destruction have made Indonesia the third-largest emitter of greenhouse gases. President Yudhoyono's pledge last year to reduce emissions by 26% over business as usual by 2020 was reaffirmed in Indonesia's inscription to the Copenhagen Accord. The mitigation actions inscribed reflect Indonesia's recognition of the importance of forests to achieving meaningful emission reductions. Making good on these ambitious targets will not be easy. Money is only part of the issue here. Significant and difficult policy and institutional reforms are critical but will require strong political commitment. Yudhoyono and his allies need significant and visible international financial and political support to counter strong vested interests at home as well as abroad. ¶4. (SBU) There is much needed to make this effort work. A strategy is needed to combine technical and financial assistance with policy dialogue, particularly on forest governance and enforcement. The legal and financial frameworks are needed to handle anticipated forest carbon credits. Much stronger emphasis needs to be placed on peat land management policy and capacity. Forest programs to date have had little overall effect on deforestation. Progress will be challenging, but chances are greater if the key group of supporting countries, working closely with the U.S., works through thorny policy issues with the GOI and coordinates assistance. These countries recognize that stronger coordination and cooperation is needed to achieve the changes critical for long-term impact. Harnessing and leveraging our combined political, financial and technical resources makes success in our efforts achieve real impact - and that Indonesia meets its commitments - more certain. ¶5. (SBU) OES Assistant Secretary Kerri-Ann Jones can discuss this initiative during her planned meeting with ministers from Australia, Germany, Norway, and United Kingdom next week in Bali. This can include soliciting their support for the climate center as a platform for collaboration. She could then discuss this proposal during bilateral meetings with key Indonesians in Jakarta on March 1-2. The U.S., along with the U.K. and Norway, are among those countries which pledged in Copenhagen to provide $3.5 billion in quick-start climate financing for forestry. The President has a golden opportunity to bring together the major donors and make a long-term impact on reducing emissions from deforestation and peat land destruction in the world's third largest emitter of greenhouse gases. HUME